In the 4th quarter of 2019 the housing market saw the biggest drop in fresh properties to be sold in a decade.
It’s well known that house prices are continuously fluctuating according to multiple factors. Within this is the local property market’s supply and demand, the time of year, but also less known reasons such as political uncertainty. This is why it’s thought fewer homes are entering the market; towards the end of 2019 there was too much uncertainty around Brexit and the general election in December. How was it going to affect stamp duty, and the property market?
In the four weeks before the 9th of November 2019, the number of houses on the open market decreased by nearly 15% compared to the same few weeks in 2018. This is the biggest drop the market has seen since the recession in August 2009, which just highlights how much political uncertainty affects the decision of home owners.
Couldn’t it have been caused by Christmas?
Of course, Christmas has an impact on the number of homes on the market too, but this happens every December so there were clearly more factors at play in 2019.
Were house prices affected too?
The average asking price increased by 0.3%, compared to the month before where the increase was 0.1% lower at 0.2%. According to The Office for National Statistics, wages rose at 3.6% with consumer price inflation sitting at 1.5%. Therefore affordability still increased, in turn lowering the risk of a drastic house price crash. Looking at house prices on a wider scale, the largest annual increase was in Yorkshire and the Humber with an impressive 3.1%, resulting in an average asking price of £192,808.
On the other side of the scale, London experienced the biggest drop in asking prices. In Greater London, the average asking price sat at £609,506, a drop of 0.8%. The hardest hit though are the most expensive properties in London. These have seen a monthly decrease of 5.4% and an annual reduction of 3.7%.
Struggling to sell?
If political uncertainty is making it difficult for you to sell your home, there are other options than entering the property market.
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